Entrenched industries are extremely difficult to disrupt let alone crush in the US. This is because established players have plenty of advantages over newcomers. For instance, these firms have financial strength, years or decades of data, strong networks and in some cases legal, political and regulatory protections. A classic example of where high tech startups …
Continue reading ‘On the Disastrous Collapse of Insuretech Industry’ »
Over the long term dividends constitute a significant portion of the total returns of any dividend paying stock or investment. Due to the effects of compounding returns tend to multiple many times over the years even if the start point of the dividend yield is low. For instance, the current dividend yield on the S&P …
Continue reading ‘Total Returns for S&P 500 Dividend Aristocrats Index vs. S&P 500 Index : Chart’ »
Investing in equity markets comes with a variety of risks. One of the risks that investors have to deal with occasionally is the risk of political crisis events. Unlike other factors, these are beyond the control of any investors. Hence it is important to analyze and determine how to react to such events. Panicking and …
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The equity markets in the have recovered strongly so far this year. The S&P 500 is up about 10% YTD. But not all sectors are performing well. For instance, tech stocks have had a great run but the banking sector is having one of the worst years since the Global Financial Crisis (GFC) of 2008-2009. …
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Bonds are an important asset class to own in a diversified portfolio. Bonds offer many benefits such as providing a stable income, relatively better safety with high-quality bonds, preservation of capital, etc. Another important point to note about bonds is that they tend to cushion a portfolio during adverse equity markets. To put it in …
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